Exam 7: The Business Plan: Creating and Starting the Venture

Which of the following interested parties should not have access to the venture's business plan?

An assessment of external uncontrollable variables that may impact the business plan is known as:

Investors often place more emphasis on the entrepreneur's _________ than lenders do.

Which of the following statements is(are)true?

Letters from customers,distributors,or subcontractors are examples of information that should be included in the executive summary of a business plan.

Which of the following is not true about the operations plan portion of the business plan?

To maintain objectivity,the business plan should not be written by the entrepreneur.

Facebook is a good source of market information on competitors.

The business plan does not help an entrepreneur to obtain financing.

The depth and detail of a business plan depend on:

All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except:

Which of the following is not a common reason why business plans fail?

Business plan progress can and should be measured throughout the year.Discuss three controls that help track progress.(Students can discuss any 3 of the following six) A.Inventory control.By controlling inventory,the firm can ensure maximum service to the customer.The faster the firm gets back its investment in raw materials and finished goods,the faster that capital can be reinvested to meet additional customer needs. B.Production control.Compare the cost figures estimated in the business plan with day-to-day operation costs.This will help to control machine time,worker hours,process time,delay time,and downtime cost. C.Quality control.This will depend on the type of production system but is designed to make sure that the product performs satisfactorily. D.Sales control.Information on units,dollars,specific products sold,price of sales,meeting of delivery dates,and credit terms is useful to get a good perspective of the sales of the new venture.In addition,an effective collections system for accounts receivable should be set up to avoid aging of accounts and bad debts. E.Disbursements.The new venture should control the amount of money paid out.All bills should be reviewed to determine how much is being disbursed and for what purpose. F.Website control.With more and more sales being supported or garnered from a company's Website,it is very important to continually evaluate the Website to ascertain its effectiveness in meeting the goals and objectives of the plan.There are many services and software packages available to assist the entrepreneur in this process.

To determine the figures in the budget,the entrepreneur should identify benchmarks or norms in the industry.

The part of the plan that describes the location and size of the business,the personnel and office equipment that will be needed,and the history of the venture is called the:

The organizational plan section of the business plan should describe the venture's form of ownership.

When evaluating business plans _________ are primarily concerned with the four Cs of credit.

Which U.S.Census publication gives statistics such as industry outputs,inputs,and operating data on manufacturing activity,by industry groups?

European online retail sales are expected to continue to grow by about 10% each year until 2018.

In the business plan the entrepreneur should address the needs of the entrepreneur and the needs of the market;the investor's perspective is not important.